Foreclosure
is a process whereby the ownership of a property is taken
away from the homeowner when he/she defaults to make his mortgage
payments.
There are several reasons that lead to foreclosure on a property. Some
of them
are unemployment, divorce, separation, death, over-expenditure, and bad
investments. In case you are envisioning a foreclosure on your
property, you
need to know about the various effects that foreclosure can have.
Apart
from losing your property, it will lead to the loss of equity that
you have earned on your home over the years. This can result in losing
a huge
amount on your property. You will also find it difficult to borrow any
further
money in the future as the foreclosure will destroy your credit profile
by
reflecting on your credit report. It may even prevent you from renting
apartments or get employment somewhere.
One of
the biggest effects that foreclosure can have is over-stress and
tension that can lead to bad health conditions, heavy depression and
dealing
with social embarrassment.
The
mortgage company may keep on chasing you for damages. It can also
lead to the loss of your job, as some companies demand sound credit
histories
from their employees. You must immediately make your move to prevent
foreclosure on your home instead of just sitting back.
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